Repossession rates plummet but remain high in the north

By Mayfair Bridging

03 Sep 2015

The number of UK homes being repossessed has fallen to its lowest level since 2006, according to the Council of Mortgage Lenders.

In the north of England, however, rates still remain high despite the reduction.

Fewer households have fallen into mortgage arrears as cheaper deals and low interest rates surge the market and help cushion more people against getting into major financial trouble.

In the last twelve months, approximately 21,000 homes in the UK have been repossessed, a figure 26 per cent lower than in the same period in 2013/14.

Out of the 21,000 repossessions in the past twelve months, 16,100 (76 per cent) were on owner-occupied homes and 4,900 (24 per cent) on buy-to-let properties.

Yet it is the north of England which is contributing the greatest number of repossessions.

It is the fear of mortgage brokers that the thousands of home-owners still being repossessed will only multiply when interest rates begin to rise again.

Those too who are only just avoiding repossession may find themselves teetering on a knife edge and could find themselves being pushed over at any moment.

However, it might be in fact an unfair portrayal to use these figures as they only represent repossessions dealt with by mainstream lenders and high street banks.

Bridging Lenders such as Preston-based Mayfair Bridging are enjoying even lower rates of repossession as demand for short term loans continues to increase within the property market.

“Our exceptionally low rate of repossessions is due to the strength of our underwriting,” commented Shoaib Bux, divisional director at Mayfair Bridging.

“We assess the exit plan in detail and some cases also ask for a contingency. Mayfair Bridging continues also to enjoy all time low default rates as a result of our team’s hard work.”

Repossession is always a last resort for any lender and strict guidelines and rules are in place to ensure lenders assess a customer’s affordability correctly on regulated contracts.

This is so no one is lured into a false sense of security about how much exactly they are able to borrow, especially in consideration of future interest rates.

With bridging lenders such as Mayfair Bridging offering an alternative and much quicker method of borrowing compared to mainstream lenders, the property market is certainly regaining the growth lost during the credit crunch.

It is expected by the Bank of England that any subsequent change in terms of repossession rates, whether they rise or fall even further, will be limited and at a graduate pace.

Interest rates will inevitably rise again, but a one-time adjustment approach will prove to be good news for British households. The Bank of England has subsequently announced plans to lower interest rates even further under the new £375bn quantitative easing programme should low inflation persist longer than anticipated.

Enjoyed this? Read more from Mayfair Bridging

Latest news

1

Morecambe shortlisted in National Visa Awards celebrating the UK’s thriving towns David Waddington and John O'Neill

Morecambe shortlisted in National Visa Awards celebrating the UK’s thriving towns

04 Jul 2025

2

County council sets out 'areas of focus for 2025-26 in document Coun Stephen Atkinson

County council sets out 'areas of focus for 2025-26 in document

04 Jul 2025

3

Warden Construction completes project to help Preston school double pupil numbers Warden Construction completes project to help Preston school double pupil numbers

Warden Construction completes project to help Preston school double pupil numbers

04 Jul 2025

4

Grant Thornton advises RJ Power Networks on sale to Ipsum Jamie Roberts

Grant Thornton advises RJ Power Networks on sale to Ipsum

04 Jul 2025

5

College principal resigns Karen Buchanan

College principal resigns

04 Jul 2025

Background image for hub sign up block

LBV Hub

Leverage Lancashire Business View platforms

Post your news
Post your events
Post your offers
Build your network
Improve your SEO
Gain coverage in the magazine
Sign-up
Events
LBV123 July/August Launch Event
Lancashire Business View magazine launch
Networking
16 Jul 2025

LBV123 July/August Launch Event

Burnley

08:30 - 10:30

Lancashire Built Environment Conference 2025
BEC 315 X 315 Px
Networking
25 Sep 2025

Lancashire Built Environment Conference 2025

Blackpool Football Club, Blackpool, FY1 6HX

08:30 - 13:00

CMI Level 5 Management and Leadership Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Management and Leadership Course

Preston Campus, Preston , PR1 2HE

09:00 - 17:00

CMI Level 5 Project Management Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Project Management Course

Preston Campus, Preston, PR1 2HE

08:00 - 17:00

Tri-Site Survey Equipment Showcase
unnamed (2).jpg.jpg
LBV Hub Seminars
09 Jul 2025 - 09 Jul 2025

Tri-Site Survey Equipment Showcase

Crow Wood Hotel, Burnley, BB12 0RT

09:30 - 16:00

Blackburn Cathedral hosts Champagne and Diamonds Event with Ainsworth Jewellers
Champagne-Jewellery 10 07 25_page-0001.jpg.jpg
LBV Hub Awards
10 Jul 2025 - 10 Jul 2025

Blackburn Cathedral hosts Champagne and Diamonds Event with Ainsworth Jewellers

Blackburn Cathedral, Blackburn, BB1 5AA

18:00 - 20:30

Choose Chorley for Business - Talent Reimagined Business Breakfast
talentreimaginedbb.png.png
LBV Hub Seminars
10 Jul 2025 - 10 Jul 2025

Choose Chorley for Business - Talent Reimagined Business Breakfast

Strawberry Fields Digital Hub, Chorley, PR71PS

08:00 - 10:30

Shaping Preston's future by remembering its past
1750160034867.png.png
LBV Hub Networking
16 Jul 2025 - 16 Jul 2025

Shaping Preston's future by remembering its past

Society1, Coworking Space, Preston, PR1 3LT

18:00 - 20:30

Chamber Summer BBQ
LBV Hub Social
17 Jul 2025 - 17 Jul 2025

Chamber Summer BBQ

The Borough, Dalton Square, Lancaster, LA1 1PP

17:30 - 20:00

Preston Tech Connection: Web3 is Dead. Or is It?
July Longer Banner.jpg.jpg
LBV Hub Networking
29 Jul 2025 - 29 Jul 2025

Preston Tech Connection: Web3 is Dead. Or is It?

Society1, Coworking Space, Preston, PR1 3LT

18:00 - 19:30

Preston Freelancer Meet-Up: July
Longer July Banner.jpg.jpg
LBV Hub Networking
31 Jul 2025 - 31 Jul 2025

Preston Freelancer Meet-Up: July

Society1, Coworking Space, Preston, PR1 3LT

10:00 - 11:30

Cumbria Business Expo 2025
https---cdn.evbuc.com-images-880461633-4862066883-1-original.20241022-110415.jpeg.jpg
LBV Hub Exhibitions
19 Sep 2025 - 19 Sep 2025

Cumbria Business Expo 2025

Carlisle Racecourse, Carlisle, CA2 4TS

09:00 - 15:00

Advertise with us

Reaching 50,000 members, our print, digital and event platforms offer a fantastic way to raise your business profile and help you grow.

Find out more LBV122 Online Graphic
Subscribe now

Weekly news bulletin